Tuesday, March 03, 2015

Chinese economic news you won't hear on mainstream shows.

via Reuters
Weakness in China's vast manufacturing sector, aggravated by high real borrowing costs and weak demand, appears to have driven the central bank to accelerate the pace of monetary easing to ward off deflation in the world's second-largest economy.
Cuts to benchmark lending and deposit rates, announced by the People's Bank of China (PBOC) on Saturday evening, pre-empted official data released on Sunday that showed a second consecutive month of shrinking manufacturing activity for February.
While economists had been predicting further easing to support the struggling economy, some were surprised that the PBOC made its move just days before China's national legislature will meet to set the official economic growth target for 2015.
"This rate cut signals policymakers' willingness to take further action to ease financing conditions in an effort to maintain stable growth," wrote Nomura analysts' in research note that said the cut had come sooner than predicted. "It also suggests that growth may have slowed sharper than we expected."
A buddy of mine chides me all the time about my saying that the world economy is no acting rationally.

I present this as another indication of some type of tomfoolery going on.  China's manufacturing sector slowed down, their bank cut rates and yet we see the stock market reach new highs?  Additionally we're seeing the price of gas start to creep back up?

ISIS, Ukraine, Libya, Africa, a weak US market, weak European market, unexplainable moves in energy prices, a weak home sector....

The world is upside down people.  Do what you will but please manage your assets with both eyes open.  Nothing makes sense anymore and if I didn't know better I'd believe that the entire game is rigged to do only one thing.

To separate you from your money.

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